Pre-tax losses at Cork's Kentech engineering reduced by 55pc to €2.7m
Pre-tax losses at the Cork- headquartered Kentech engineering group more than halved to $3.45m. (€2.7m) last year.
The numbers that the group employs last year fell by 205 to 2,994 and the directors state that they have a record pipeline of business and expect to see a significant increase in revenues this year. The accounts show that the firm recorded a 1.3pc increase in revenues last year to $123.3m that contributed to the 55.7pc reduction in pre-tax losses.
The directors say that following the "significant loss" of $7.79m reported in 2012, "the performance of the group has improved, but there is still further to go".
The directors say that "this improvement is due to the successful execution of the strategic review undertaken in 2012 and has led to a more balanced mix of contract structures".
The directors add that the 2013 loss "has led directly from ongoing issues in legacy unit rate contacts taken on before this strategic review".
The directors further reveal that "in the UAE, significant delays on a multi-year project accompanied by cost escalations has meant that the total estimated loss on the project has been recorded in 2013.
"The loss on this project is the key driver behind the adverse results of the group in 2013."
The directors say that Kentech Global Services "continued to grow with new contracts being awarded with blue chip international oil company clients".
The group provides a range of engineering services in the gas, mining, power and petrochemical industries in the United Arab Emirates, Qatar, Kuwait, Russia, Kazakhstan and Australia.
The group's accumulated profits fell from $16m to $11.3m. The loss also takes account of non-cash depreciation costs of $2.3.m
The group's staff costs last year decreased by 3pc from $66.3m to $64m as numbers employed by the group decreased from 3,199 to 2,994.
Remuneration to six directors that served during the year decreased from $2.65m to $2.34m.